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Canadian Pacific's Record Q3 & September Grain Movement

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Canadian Pacific Railway Limited (CP - Free Report) achieved its best-ever third quarter record by moving 7.7 million metric tonnes (MMT) of Canadian grain and grain products. With this, the company broke its third-quarter 2014 third record of moving 7 MMT of Canadian grains. The record grain movement in the third quarter is expected to have bolstered the top line.

Canadian Pacific also set a new September record by shipping 2.8 MMT of Canadian grain and grain products. With this, the company has broken its 2017 September record by more than 8.4%.

Canadian Pacific has been able to achieve its record gain movement by adding 3,200 new high-capacity hopper cars in its fleet.  The new hopper cars can carry 15% more volume and 10% more weight compared with the older cars. An 8,500-feet High Efficiency Product (HEP) train can carry in excess of 40% more grain than the 7,000-feet train model when combined with the additional capacity of the new hopper cars.

Notably, customers are actively investing in their elevator networks to accommodate 8,500-foot HEP trains. By the end of 2020, it is expected that more than 30% of the unit train loaders will be HEP qualified. This will boost capacity and efficiency in the grain supply chain for Canadian Pacific customers and shareholders.

Zacks Rank & Key Picks

Canadian Pacific currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Zacks Transportation sector are  Knight-Swift Transportation Holdings Inc. (KNX - Free Report) , J.B. Hunt Transport Services, Inc. (JBHT - Free Report) and Werner Enterprises (WERN - Free Report) . Knight-Swift and J.B. Hunt carry a Zacks Rank #2 (Buy), while Werner sports a Zacks #1 (Strong Buy) Rank. You can see the complete list of today’s Zacks #1 Rank stocks here.

Long-term expected earnings per share (three to five years) growth rate for Knight-Swift, J.B. Hunt and Werner is pegged at 15%, 15% and 8.5%, respectively.

5 Stocks Set to Double

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